The Glossy Podcast: Week in Review – TikTok's Ban, Anta's Popularity, and Mass Retail's Layoffs

Release Date: January 31, 2025

Hosted by Danny Parisi, Senior Fashion Reporter at Glossy, the latest episode of The Glossy Podcast delves into three significant developments impacting the fashion and luxury industries: the ongoing TikTok ban, the meteoric rise of Chinese sneaker brand Anta, and the wave of layoffs sweeping through mass retailers like Kohl's, Macy's, and JCPenney. Joining Danny is special guest Tom Nuwak, CMO of Evereve, who provides invaluable insights into these topics.

1. TikTok Ban: Navigating Uncertainty in Social Media Marketing

Overview: The episode opens with a discussion on the ambiguous status of TikTok in the United States. The app remains technically banned, yet former President Trump issued an executive order delaying enforcement for 75 days, creating a "murky" regulatory environment.

Key Points:

• Regulatory Confusion: The executive order's ambiguity leaves businesses uncertain about TikTok's future accessibility on platforms like the Apple App Store.

  Danny Parisi [04:23]: "It's really kind of weird and all up in the air."

• Marketers' Response: Brands are proactively reallocating their marketing budgets to alternative platforms such as Meta, Pinterest, and YouTube Shorts in anticipation of TikTok's uncertain future.

  Tom Nuwak [03:40]: "Marketers have already made plans about where that money might go and guessing where all the attention that is on TikTok will shift."

• Evereve’s Strategy: Evereve, under Tom's leadership, has chosen to focus primarily on Instagram, leveraging its established user base that aligns with their target demographic of 30 to 50-year-olds.

  Tom Nuwak [05:16]: "We've just sort of said we know that with a limited team, we can go all in on Instagram and do a good job."

• Emergence of New Platforms: The ban has spurred growth in alternative social media platforms like RedNote and Lemon8, as well as live stream shopping apps such as Whatnot.

  Danny Parisi [07:31]: "It does feel like there's maybe a gap to fill."

Notable Insights: Tom emphasizes the importance of understanding and adapting to shifting social media landscapes:

Tom Nuwak [10:49]: "My guess is the platforms that you would think would be the winners in this are going to be the ones who are the winners in it."

2. Anta's Ascent in the U.S. Sneaker Market

Overview: The conversation shifts to Anta, a Chinese sneaker brand that has witnessed explosive growth in the U.S., particularly noted for its collaboration with basketball star Kyrie Irving.

Key Points:

• Growth Metrics: According to StockX, Anta experienced a staggering 1,900% growth in 2024, positioning it as a formidable player in the sneaker market outside China.

  Danny Parisi [12:24]: "Last year ANTA was by far the fastest growing sneaker brand on StockX."

• Strategic Partnerships: Anta's collaboration with Kyrie Irving, who embodies a unique and provocative persona, has significantly boosted the brand's credibility and appeal.

  Tom Nuwak [18:48]: "That partnership with someone like Kyrie and the product that came out of it... feels pretty bold."

• Market Positioning: Anta leverages its deep financial resources to secure endorsements from professional athletes, mirroring strategies used by established brands like Nike.

• Evereve’s Parallel Growth: Drawing parallels to Evereve's strategic growth, Tom discusses the importance of understanding target customers and maintaining a focused expansion approach.

  Tom Nuwak [15:17]: "Slow and steady wins the race."

Notable Insights: Tom highlights the potential long-term sustainability of Anta's growth due to its vertical integration and strategic market positioning:

Tom Nuwak [15:17]: "I don't think they [ANTA] are going to have those kind of supply chain issues. So that's a big win for them."

3. Mass Retail Layoffs: Kohl's, Macy's, and JCPenney in Crisis

Overview: The episode concludes with an analysis of the recent layoffs and store closures announced by major U.S. retailers, signaling broader challenges within the retail sector.

Key Points:

• Kohl's Layoffs: Kohl's has announced a reduction of its corporate workforce by approximately 10%, equating to around 200-400 jobs, alongside the closure of 27 stores.

  Danny Parisi [20:04]: "Kohl's this week announced... layoffs of 10% of its corporate workforce, which they said is under 200 people, but that's still pretty significant."

• Wider Retail Struggles: Macy's and JCPenney are also closing stores and laying off staff, reflecting a troubling trend across both high-end and affordable department stores.

  Danny Parisi [21:10]: "Macy's is closing like 66 stores or something. There's layoffs at a lot of similar mass retailers."

• Underlying Causes: Tom attributes the struggles to a lack of clear customer focus and poor curation of product offerings. Unlike Evereve, which excels by deeply understanding its target demographic, mass retailers often attempt to cater to everyone, resulting in brand dilution and inefficiency.

  Tom Nuwak [22:05]: "We know who our customer is, and we know her inside out... They try to be everything to everyone, and then they end up standing for nothing."

• Pricing Strategies: The reliance on discounting and inconsistent pricing strategies alienates customers who prefer transparency and fair pricing.

  Tom Nuwak [22:58]: "They've just gotten into this discount trap where... they taught customers to wait for sales because those sales will always come."

• Potential Solutions: Tom suggests that some retailers might benefit from going private to escape the pressures of quarterly performance metrics and focus on long-term strategic changes.

  Tom Nuwak [26:31]: "Going private could be a solution because some of the choices you have to make... don't play very well in three month results meetings."

Notable Insights: Tom underscores the importance of having a clear "North Star" in retail strategy, emphasizing focused customer understanding over broad, unfocused market attempts.

Tom Nuwak [22:05]: "We know what belongs here, what doesn't belong here. They have everything. So it's cluttered. It's kind of overwhelming."

Conclusion

The episode provides a comprehensive analysis of the dynamic shifts within the fashion and luxury sectors. From the uncertain future of TikTok influencing marketing strategies, Anta's strategic maneuvers in the competitive sneaker landscape, to mass retailers grappling with operational challenges, The Glossy Podcast offers valuable insights for industry insiders and enthusiasts alike.

Danny Parisi [27:10]: "You summed up the kind of the situation perfectly. Thank you again for being here."

Listeners are encouraged to subscribe and leave reviews to stay informed on the latest industry trends and expert analyses.

Key Quotes:

• Danny Parisi [04:23]: "It's really kind of weird and all up in the air."
• Tom Nuwak [03:40]: "Marketers have already made plans about where that money might go and guessing where all the attention that is on TikTok will shift."
• Tom Nuwak [05:16]: "We've just sort of said we know that with a limited team, we can go all in on Instagram and do a good job."
• Tom Nuwak [10:49]: "My guess is the platforms that you would think would be the winners in this are going to be the ones who are the winners in it."
• Tom Nuwak [18:48]: "That partnership with someone like Kyrie and the product that came out of it... feels pretty bold."
• Tom Nuwak [15:17]: "Slow and steady wins the race."
• Tom Nuwak [22:05]: "We know who our customer is, and we know her inside out... They try to be everything to everyone, and then they end up standing for nothing."
• Tom Nuwak [26:31]: "Going private could be a solution because some of the choices you have to make... don't play very well in three month results meetings."

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